ACCT 211 Homework 12 Reporting Cash Flows Exercises Assignment solutions complete answers

ACCT 211 Homework 12 Reporting Cash Flows Exercises Assignment solutions complete answers 

 

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Hampton Company reports the following information for its recent calendar year.
 

Income Statement Data
 
Selected Year-End Balance Sheet Data
 
Sales
$ 75,000
Accounts receivable increase
$ 9,000
Expenses:
 
Inventory decrease
4,000
Cost of goods sold
42,000
Salaries payable increase
800
Salaries expense
10,000
 
 
Depreciation expense
6,000
 
 
Net income
$ 17,000
 
 
 
Required:
Prepare the operating activities section of the statement of cash flows using the indirect method. (Amounts to be deducted should be indicated with a minus sign.)

 

Arundel Company disclosed the following information for its recent calendar year.
 

Income Statement Data
 
Selected Year-End Balance Sheet Data
 
Revenues
$ 95,000
Accounts receivable decrease
$ 24,000
Expenses:
 
Purchased a machine for cash
22,000
Salaries expense
73,000
Salaries payable increase
29,000
Utilities expense
34,000
Interest payable decrease
16,000
Depreciation expense
31,200
 
 
Interest expense
7,700
 
 
Net loss
$ (50,900)
 
 
 
Prepare the operating activities section of the statement of cash flows using the indirect method. (Amounts to be deducted should be indicated with a minus sign.)

 

a.   Equipment with a book value of $83,000 and an original cost of $169,000 was sold at a loss of $32,000.

b.   Paid $106,000 cash for a new truck.

c.   Sold land costing $320,000 for $405,000 cash, yielding a gain of $85,000.

d.   Stock investments were sold for $92,800 cash, yielding a gain of $14,750.
 

Use the above information to determine cash flows from investing activities. (Amounts to be deducted should be indicated with a minus sign.)

 

The following financial statements and additional information are reported.
 

IKIBAN INCORPORATED
Comparative Balance Sheets
At June 30
2021
2020
Assets
 
 
Cash
$ 97,900
$ 60,000
Accounts receivable, net
89,000
67,000
Inventory
79,800
110,500
Prepaid expenses
6,000
8,600
Total current assets
272,700
246,100
Equipment
140,000
131,000
Accumulated depreciation—Equipment
(35,000)
(17,000)
Total assets
$ 377,700
$ 360,100
Liabilities and Equity
 
 
Accounts payable
$ 41,000
$ 54,000
Wages payable
7,600
18,200
Income taxes payable
5,000
7,000
Total current liabilities
53,600
79,200
Notes payable (long term)
46,000
76,000
Total liabilities
99,600
155,200
Equity
 
 
Common stock, $5 par value
252,000
176,000
Retained earnings
26,100
28,900
Total liabilities and equity
$ 377,700
$ 360,100
  

IKIBAN INCORPORATED
Income Statement
For Year Ended June 30, 2021
Sales
$ 758,000
Cost of goods sold
427,000
Gross profit
331,000
Operating expenses (excluding depreciation)
83,000
Depreciation expense
74,600
 
173,400
Other gains (losses)
 
Gain on sale of equipment
3,600
Income before taxes
177,000
Income taxes expense
45,490
Net income
$ 131,510
 
Additional Information

a.   A $30,000 notes payable is retired at its $30,000 carrying (book) value in exchange for cash.

b.   The only changes affecting retained earnings are net income and cash dividends paid.

c.   New equipment is acquired for $73,600 cash.

d.   Received cash for the sale of equipment that had cost $64,600, yielding a $3,600 gain.

e.   Prepaid Expenses and Wages Payable relate to Operating Expenses on the income statement.

f.     All purchases and sales of inventory are on credit.

Required:

(1) Prepare a statement of cash flows using the indirect method for the year ended June 30, 2021. (Amounts to be deducted should be indicated with a minus sign.)

 

(2) Compute the company’s cash flow on total assets ratio for its fiscal year 2021.

 

The following financial statements and additional information are reported.
 

IKIBAN INCORPORATED
Comparative Balance Sheets
At June 30
2021
2020
Assets
 
 
Cash
$ 81,500
$ 54,000
Accounts receivable, net
80,000
61,000
Inventory
73,800
101,500
Prepaid expenses
5,400
7,400
Total current assets
240,700
223,900
Equipment
134,000
125,000
Accumulated depreciation—Equipment
(32,000)
(14,000)
Total assets
$ 342,700
$ 334,900
Liabilities and Equity
 
 
Accounts payable
$ 35,000
$ 45,000
Wages payable
7,000
17,000
Income taxes payable
4,400
5,800
Total current liabilities
46,400
67,800
Notes payable (long term)
32,000
70,000
Total liabilities
78,400
137,800
Equity
 
 
Common stock, $5 par value
240,000
170,000
Retained earnings
24,300
27,100
Total liabilities and equity
$ 342,700
$ 334,900
  

IKIBAN INCORPORATED
Income Statement
For Year Ended June 30, 2021
Sales
$ 728,000
Cost of goods sold
421,000
Gross profit
307,000
Operating expenses (excluding depreciation)
77,000
Depreciation expense
68,600
 
161,400
Other gains (losses)
 
Gain on sale of equipment
3,000
Income before taxes
164,400
Income taxes expense
44,890
Net income
$ 119,510
 
Additional Information

a.   A $38,000 note payable is retired at its $38,000 carrying (book) value in exchange for cash.

b.   The only changes affecting retained earnings are net income and cash dividends paid.

c.   New equipment is acquired for $67,600 cash.

d.   Received cash for the sale of equipment that had cost $58,600, yielding a $3,000 gain.

e.   Prepaid Expenses and Wages Payable relate to Operating Expenses on the income statement.

f.     All purchases and sales of inventory are on credit.


Using the direct method, prepare the statement of cash flows for the year ended June 30, 2021. (Amounts to be deducted should be indicated with a minus sign.)